Charter Financial Set to Reward Investors

Capital deployment, including a stock buyback program, should unlock value for the Georgia-based bank.

This column has often pointed out how mutual bank conversions can benefit investors. In these transactions, a mutually held bank sells its stock to the public, usually coming to market at below tangible book value, leaving the bank flush with excess capital. Over time, as the bank deploys its capital into stock buybacks and dividends, the shares can offer investors attractive returns.